PEER COMPANIES

Loading data...

PEER COMPANIES

MUMBAI: Shares of information technology companies underperformed the broad markets in the month ended April 26. Shares of Infosys , Wipro , HCL Tech and TCS have seen prices falling by 23%, 24%, 14% and 12% respectively. In this timeframe, BSE IT Index has lost 18%, while BSE Sensex has gained 3.11%.

Shares of Infosys tanked on the day it announced its fourth quarter results. Analysts expressed concerns about Infosys' weak USD revenue guidance, pressure on volumes and margin headwinds. The weak sentiment spread to other stocks too and traders preferred to dump shares of IT companies. These stocks have moved up too fast in a short span before the announcement of fourth quarter results and were in overbought territory, which is another reason why the profit booking got triggered in these stocks. "Market participants also expect that the proposed immigration bill may adversely impact the Indian IT companies, hence they dumped these stocks," says Ankita Somani, analyst - IT, Angel Broking.

Experts advise investors to keep a watch on this sector as there may be good investment opportunities if the global economy recovers. Ankita Somani has a 'buy' rating on HCL Technologies and an 'accumulate' rating on TCS. She recommends these two stocks with at least one year view.